Knight Ridder Blames Ad Slump as Earnings Falter

25 February 2002

Ad revenues continue to be sluggish in America’s newspaper industry, judging by a warning from Knight Ridder – the sector’s number two publisher – that first quarter earnings would be at the bottom end of expectations.

Blaming the ad slump, the owner of over thirty daily papers nationwide said earnings per share would be at “the low end” of the 55–70 cents range estimated by analysts surveyed by Thomson Financial/First Call.

Knight Ridder revealed advertising income had slumped 13% year-on-year in January, with revenues from classified ads tumbling 24%.

Commented chairman/ceo Tony Ridder: “While our retail [advertising] decline was the lowest since a modest gain last August, general and classified both continued to have tough months.”

Data sourced from: Wall Street Journal; additional content by WARC staff